AUSTRALIAN PHARMA R&D SPENDING

Australia's government industry development plan, Factor (f), has encouraged increased investments in research and development by the pharmaceutical industry in Australia, from a level of 2.9% of sales in 1987 to an average of 6.5% in 1990, according to the chief executive officer of the Australian Pharmaceutical Manufacturers Association, Kerry Bell.

Commenting on claims that Australian pharmaceutical industry expenditures on R&D are at low levels compared with those of their overseas counterparts, Mr Bell said that while Australian industry R&D in general lags well behind the average for Organization for Economic Cooperation and Development countries, the nation's pharmaceutical industry "has made great strides in getting closer to those norms," and spends much more on R&D than Australian industry in general.

"Further growth in pharmaceutical R&D to get Australian industry up to the very high levels of approximately 16%-20% of sales, which is the norm for our industry in the USA, Europe and Japan, is depending on continuing government support of industry through the Factor (f) program," according to Mr Bell. However, he noted that the APMA is concerned that Factor (f) funds have been fully committed. There are a number of R&D projects which cannot proceed at present because of this lack of government funds, and given the benefits flowing to Australia, the APMA is urging the government to redress the funding issue as a matter of urgency, he said.